Garmin Ltd. (NASDAQ:GRMN) reported its results for the second quarter. Garmin Ltd. and its subsidiaries manufacture, market, and distribute Global Positioning System-enabled products and other related products.
Garmin Earnings Cheat Sheet for the Second Quarter
Results: Net income for the scientific and technical instruments company fell to $109.5 million (56 cents per share) vs. $134.8 million (67 cents per share) a year earlier. This is a decline of 18.8% from the year earlier quarter.
Revenue: Fell 7.5% to $674 million from the year earlier quarter.
Actual vs. Wall St. Expectations: GRMN reported adjusted net income of 63 cents per share. By that measure, the company fell short of mean estimate of 66 cents per share. It beat the average revenue estimate of $633.8 million.
Quoting Management: “In the second quarter, revenue was slightly ahead of our expectations and we delivered strong free cash flow generation but margins fell short driven by increased deferral of high margin revenues associated with bundled product offerings and increased operating costs due to bad debt and legal expenses,” said Dr. Min Kao, chairman and chief executive officer of Garmin Ltd.
The company fell short of estimates last quarter after beating the mark the quarter before with net income of 49 cents versus a mean estimate of net income of 33 cents per share.
Net income has increased 19.6% year over year on average across the last five quarters. The biggest gain came in the first, when income climbed more than twofold from the year earlier quarter.
Revenue fell last quarter after seeing a rise the quarter before. Revenue dropped 17.8% to $507.8 million in the first quarter from the year earlier.
Competitors to Watch: KVH Industries, Inc. (NASDAQ:KVHI), Cobra Electronics Corp. (NASDAQ:COBR), TeleNav, Inc. (NASDAQ:TNAV), Trimble Navigation Limited (NASDAQ:TRMB), Nokia Corporation (NYSE:NOK), Motorola Solutions Inc (NYSE:MSI), Motorola Mobility Hldgs. Inc (NYSE:MMI), Sprint (NYSE:S), Verizon (NYSE:VZ), Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG) and Research In Motion Ltd. (NASDAQ:RIMM).
(Source: Xignite Financials)